we are in to mechanical construction field and we have taken some fabrication & Erection project in Adani port company where they are emphasizing us to register for BOCW. so, are we coming under the act critaria, its not our premises but we are contractor over there. There is marine applies so, due to that they are asking for the same??
Kindly confirm me in the same regard..
awaiting for your valuable reply..
Would it not be improper to bifurcate the same? One part (say .5%) may be deducted for government exchequer for comprehensive long term schemes and the other part (balance .5%) for the labor of the same project with adequate monitoring by labor department. Welfare policies concerning local workers related to their socio-economical, education and other related may be dealt with. As the environment mitigation plans, safety plans, insurance etc. are mandatory why such plans as regards labor welfare may not be made compulsory for projects.
Formality i.e. Procedure of registering beneficiaries vary in every state. In Maharashtra, you need to apply for the said registration in Form 5 together with appendix A with following documents of beneficiaries:
1. Photographs ( 2 nos.);
2. Address proof or certificate by employer stating the beneficiary is residing in labour camp provided by him;
3. Age proof ( in absence of age proof, a certificate by employer with doctor’s certificate)
Rs. 85/- towards registration fee (Rs. 25/-) and monthly contribution (Rs. 5/- per month for 12 months in advance, total Rs. 60/-) payable.
The procedure is kept on changing as per the will of the officer. Also there is no uniformity in this, in each office in Maharashtra.
I am attaching herewith From 5, Appendix A, Form of Certificates by employer (as stated above) for your ready reference.
Now question is to be asked by some one, how many registrations have been done so far during last 2-3 years time? But if you have not applied for registration then it is a default on your part.
BOCW Act applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work.
Building or other construction work means the work of construction, alteration, repairs, maintenance or demolition, of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, flood control works (including storm water drainage works), generation, transmission and distribution of power, water works (including channels for distribution of water), oil and gas installations, electric lines, wireless, radio, television, telephone, telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 or the Mines Act, 1952 apply.
Accordingly to this, the Act is applicable to your work site.
Establishment under this Act means any establishment belonging to, or under the control of, Government, any body corporate or firm, an individual or association or other body of individuals which or who employs building workers in any building or other construction work; and includes an establishment belonging to a contractor, but does not include an individual who employs such workers in any building or contraction work in relation to his own residence the total cost of such construction not being more than rupees ten lakhs.
Every employer in relation to an establishment to which this Act applies, is liable to register his establishment under the Act on its commencement, within a period of sixty days from such commencement.
Accordingly, you being an establishment belonging to a contractor, are liable to register your establishment under the Act.
(Please be noted from the provisions of the BOCW Act that, it could be inferred that registration under the Act is establishment specific and not employer specific.)
I hope my answer is up to your satisfaction.
I appreciate your feelings and agree with you cent percent. But you and I can not change any enactment. We have no option but to pay the cess as per law.
We pay cess in crores but what is the social security or welfare of the construction labour? Where this money goes?
Of-late, various state governments have started some welfare just to show SC.
Given below is a text of article published in TNN Nov 29, 2011 for your and other members information:
SC threatens contempt to force implementation of construction worker welfare law
NEW DELHI: Millions of workers engaged in the construction sector may son get the promised welfare measures with the Supreme Court on Monday issuing notices to all states and Union Territories asking them to show cause why contempt proceedings be not initiated against officers for non-implementation of two labour friendly laws.
A bench of Chief Justice S H Kapadia and Justices A K Patnaik and Swatanter Kumar said all states and UTs had failed to honour the apex court's orders for full implementation of the Building and Other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996, and the Building and Other Construction Workers Welfare Cess Act, 1996.
"Since almost every state and Union Territory is in contempt on one head or the other, we have no option but to take further steps. However, to give one final opportunity, we direct them to show cause why contempt proceedings be not initiated against concerned officers," the bench said.
With senior advocate Colin Gonsalves, who appeared for NGO 'National Campaign Committee for Central Legislation on Construction Labour' (NCC-CL), complained that the 12-year-old legislations remained dead laws, the bench brushed aside pleas from counsel for states who said they would file affidavits.
The bench said, "Now you face the music. We do not want affidavits. We want compliance of our orders. Question is of disbursal of the cess collected from contractors and not collecting and sitting over it."
The NGO had alleged that Delhi government had collected Rs 140 crore from builders as cess over the years to spend on welfare of workers in the construction sector but not a single penny had gone out of its coffers.
Five years ago, the apex court had sought responses from the Centre and all states why a law intending to provide security net to millions of workers in the construction sector had not been implemented. NCC-CL had alleged that rate of fatal accidents involving construction workers was 160-250 per 1,000 compared to 60-80 per 1,000 in the manufacturing sector, which was the highest in the world.
The laws envisage levying 2% cess on contractors and building a corpus to compensate workers and their family members in case of an accident or death at the construction site. The apex court had in a recent judgment upheld the constitutional validity of the 2% cess.
Greetings for giving popurlarity to BOCW Act.
I want to know if this cess once paid by the owner of the land and builinding can be recovered from the Contractor. Our organization is constructing an institutional building. Our organization was required to pay Construction Cess @1% at the time of issue of sanction letter by the local authority. Now we are recovering this Cess from the Contractor who is employing the labour for this project.
Please let us know if we are following the legally correct practice.
Looking forward to your guidance.
C.M. Lal Srivastav
In your case,the owner / PE (i.e. you) is liable to make payment of cess. However, you can recover the amount from contractors if you have a clause to this effect in the contract with them. If there is no clause in the contract, in my view, you can not recover it.